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Business plan furniture business

Schematically, any business plan consists of analyzing costs and predicting future profits to calculate the profitability and payback of the project. Thus, it is possible to accurately determine the scale of the future enterprise and the difficulties on the way of its formation.

Before you start making a business plan, you need to clearly know the market niche, narrow specialization.

Production of specialized furniture for retail outlets or from a certain material; household upholstered or Cabinet furniture; furniture for built-in appliances; restoration of furniture, including antique restoration-can bring significant income.

Small firms offer customers additional services: custom furniture manufacturing, design assistance, Assembly, delivery.

Another option is trade, and here you should define the format of the store. This can be a small furniture store, an online resource, or a full-fledged store with an extensive range, or even a whole network. A furniture business can represent a full cycle from creation to sale to a specific buyer.

Therefore, to select the correct direction in the business plan should examine the existing market, the range of furniture stores, legislation, changes which may increase the growth of a certain market segment or, conversely, to minimize it.

Outdoor advertising, such as banners and billboards, can also attract customers. Such tools as booklets in stores, advertising in the press, and participation in exhibitions are also good. These costs should also be taken into account when drawing up a business plan. These are common features of the furniture industry. Now let’s look at how business plans differ for different areas of this industry.

Business plan for furniture production
So, the opening of furniture production consists of a number of mandatory stages:

choosing a room for the shop;
equipment purchase
production technology;
the selection of suppliers of materials;
selection of staff;
For a business to function, it must be registered with the state tax authorities. Usually they stop at individual entrepreneurs with a simplified tax system. All these actions require certain investments that will need to be made in the business plan.

For the production of furniture you will need several rooms:

workshop area of at least 150 sq. m.;
warehouse with a minimum area of 200 sq. m.;
office space of about 100 square meters;
retail space from 40 sq. m.
The larger the production will be, the larger the size of the premises for rent is necessary. All costs for renting or purchasing premises should be reflected in the business plan.

The purchase of equipment is a significant part of the investment. Depending on the type of production, you will need serial machines or production lines. This item is also included in the cost estimate.

An important component is the acquisition of various types of transport.

High-quality components are necessary for the production of competitive furniture. The choice of suppliers of domestic and imported materials does not occur immediately. Over time, there are no more than ten proven and reliable companies. At the initial stage, it is better to calculate the maximum possible costs for materials, then along with finding new suppliers, this point in the business plan is adjusted.

For the production of furniture, you need a certain staff consisting of 30-45 people:

The exact quantity depends on the scale of production. Still need managers, storekeepers, movers, designers, managers, drivers, sellers.

Employees ‘ salary expenses are also included in the business plan.

It is important to take into account that at first the production is idle until sales channels are established, the range is approved and other organizational issues are resolved. These costs are also included in the business plan.

A separate line includes tax fees and any other mandatory payments.

Revenue that should be reflected in the business plan includes revenue from the sale of furniture products. You can sell wholesale and retail, online or offline.

According to economic data, if the business plan is calculated correctly and the products are sold correctly, the payback period is up to three years.

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